Turkey Industry

Turkey: Industrial production slows to six-month low

September 9, 2015

In July, industrial production expanded a meager calendar-adjusted 0.3% over the same month last year, which was notably below the revised 4.9% increase tallied in June (previously reported: +5.5% year-on-year). July’s result marked the smallest expansion since January 2015 and significantly undershot the 3.4% expansion that market analysts had expected. According to the statistical institute, the result reflected a notable slowdown in manufacturing production.

A month-on-month comparison corroborates the deterioration suggested by the annual figures as industrial production swung from a revised 2.0% expansion in seasonally- and calendar-adjusted terms in June (previously reported: +2.4% month-on-month) to a 1.5% contraction in July. Annual average growth in industrial output fell from June’s 2.6% to 2.3% in July.

FocusEconomics Consensus Forecast participants expect industrial production to rise 2.8% in 2015, which is unchanged from last month’s estimate. The panel sees industrial output increasing 3.6% in 2016.

The current account balance recorded a USD 4.2 billion deficit in November, above market expectations of USD 4.0 billion, and a sizeable increase from the USD 2.2 billion shortfall recorded in November 2016.